**Summary:**
The Union Government, through the Ministry of Panchayati Raj, has released XV Finance Commission (XV FC) grants totaling over Rs. 342 crores to Rural Local Bodies (RLBs) in Tamil Nadu and Assam. This disbursement, facilitated in coordination with the Ministry of Jal Shakti's Department of Drinking Water and Sanitation and released by the Ministry of Finance, represents the first installment of untied grants for the financial year 2025-26 for Tamil Nadu and 2024-25 for Assam.
Specifically, Tamil Nadu received Rs. 127.586 crores, benefiting 2901 eligible Gram Panchayats, 74 eligible Block Panchayats, and 9 eligible District Panchayats. Assam received Rs. 214.542 crores, covering all 2192 eligible Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads.
These grants, recommended and released in two installments annually, are divided into Untied and Tied categories. Untied Grants are intended for location-specific needs identified by the RLBs/ Panchayati Raj Institutions (PRIs) within the Twenty-Nine (29) subjects of the Eleventh Schedule of the Constitution, excluding salaries and establishment costs. Tied Grants are earmarked for basic services, specifically (a) sanitation and maintenance of Open Defecation Free (ODF) status, including household waste management, human excreta and fecal sludge management, and (b) supply of drinking water, rainwater harvesting, and water recycling.
This information was released by PIB Delhi on September 17, 2025, at 11:14 AM. The Release ID is 2167452. Aditi Agrawal is listed as the contact person.
Key Entities Referenced
XV Finance Commission: Refers to the 15th Finance Commission of India, responsible for recommendations on the distribution of tax revenues between the Union and the States.
Rural Local Bodies: Local self-government institutions in rural areas, including Gram Panchayats, Block Panchayats, and District Panchayats.
Tamil Nadu: A state in southern India, recipient of XV Finance Commission grants for Rural Local Bodies.
Assam: A state in northeastern India, also a recipient of XV Finance Commission grants for Rural Local Bodies.
Ministry of Panchayati Raj: The Union Government ministry responsible for matters relating to Panchayati Raj Institutions and rural local governance.
Ministry of Jal Shakti Department of Drinking Water and Sanitation: A Union Government ministry and its department responsible for providing safe drinking water and sanitation.
Ministry of Finance: A Union Government ministry responsible for financial matters including disbursement of grants to states.
Panchayati Raj Institutions (PRIs): Local self-government institutions at the village, intermediate, and district levels in rural India.
Ministry of Panchayati Raj
Centre Releases Over 342 Crores XV Finance
Commission Grants for Rural Local Bodies in Tamil
Nadu & Assam
Posted On: 17 SEP 2025 11:14AM by PIB Delhi
The Union Government has released XV FC grants for Rural Local Bodies during FY 2025–26, disbursing
the 1st installment of untied grants amounting to Rs.127.586 crores for Tamil Nadu of the financial
year 2025-26 (covering 2901 eligible Gram Panchayats, 74 eligible Block Panchayats, and 9 eligible District
Panchayats) and Rs.214.542 crores for Assam of the financial year 2024-25 (covering all 2192 eligible
Gram Panchayats, 156 eligible Block Panchayats, and all 27 eligible Zilla Parishads).
Government of India through Ministry of Panchayati Raj and Ministry of Jal Shakti (Department of
Drinking Water and Sanitation) recommends release of XV-FC grants to States for Rural Local
Bodies (RLBs) / Panchayati Raj Institutions (PRIs), which are then released by Ministry of Finance.
The allocated grants are recommended and released in 2 installments in a financial year. While the
Untied Grants will be utilized by RLBs/ PRIs for location-specific felt needs, under the Twenty-Nine
(29) subjects enshrined in the Eleventh Schedule of the Constitution, except for salaries and
other establishment costs. The Tied Grants can be used for the basic services of (a) sanitation and
maintenance of ODF status, and this should include management and treatment of household
waste, and human excreta and fecal sludge management in particular and (b) supply of drinking
water, rainwater harvesting and water recycling.
***
Aditi Agrawal
(Release ID: 2167452)